Indian Government Denies Reports that China is Printing Rupees

The South China Morning Post, a financial news release, recently reported that a Chinese state-owned company, China Banknote Printing and Minting Corporation, has been contracted to print large quantities of international currencies, including India.

This follows yesterday’s reports that China’s currency minting corporation is working at full capacity printing foreign currencies.

The Indian government, however, has flatly denied that it has signed a contract with a company in China to print rupee notes.

“Reports about any Chinese currency printing corporation getting any orders for printing Indian currency notes are totally baseless. Indian currency notes are and will be printed in Indian Govt & RBI currency presses: Subash Chandra Garg, Secy, Dept of Economic Affairs,” ANI News tweeted quoting Subash Chandra Garg of the Indian Department of Economic Affairs.

Reports about any Chinese currency printing corporation getting any orders for printing Indian currency notes are totally baseless. Indian currency notes are being & will be printed only in Indian Govt & RBI currency presses: Subash Chandra Garg, Secy, Dept of Economic Affairs pic.twitter.com/b3zmp662Ay

In the article published by Chinese media, the South China Morning Post went so far as to say that although the demand for domestic currency was at its lowest level, China Banknote Printing and Minting Corporation was operating at full capacity to comply with international contracts, including India. Following the publication, opposition parties in India asked for clarification from the government on the subject.

China still has not denied the report made by the Hong Kong based newspaper with Chinese state media picking up reports from New Delhi quoting Congress MP Shashi Tharoor on the issue.

“If the news is true, it will have an impact on national security. Not to mention the Pakistani rupee. It is easy to fake,” Tharoor tweeted. He also asked the government to clarify the matter.

But a top Chinese has official dismissed Tharoor’s fears.

“This statement is very ridiculous,” Bai Ming, deputy director of the Chinese Academy of International Trade and Cooperation (CAITEC), which is affiliated to Ministry of Commerce, told Global Times, indicating China wasn’t deliberately trying to spread its influence or expose loopholes in security.

Bai explained that the currency of any country is determined by the authorities of that country.

“Cooperation with China will not affect the interests of the other party. China has not let other countries be in debt for ‘obeying’ China. We don’t have this ability. We don’t want to do this. The only thing we pursue is mutual benefit,” Bai said.

However, the president of China’s minting corporation has stated that some governments have asked Beijing not to reveal currency printing agreements because they are concerned that such information could “compromise national security” or trigger “unnecessary debates at home.”